NASA's $26M JPL contract to Caltech for R&D in physical, engineering, and life sciences shows long-term partnership
Contract Overview
Contract Amount: $26,004,097 ($26.0M)
Contractor: California Institute of Technology
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-09-11
End Date: 2011-12-31
Contract Duration: 3,033 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 51
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: OVWST
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91125
Plain-Language Summary
National Aeronautics and Space Administration obligated $26.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY for work described as: OVWST Key points: 1. This contract represents a significant, long-term investment in research and development, indicating a sustained need for specialized scientific expertise. 2. The sole-source nature of this award suggests a unique capability or established relationship, warranting scrutiny of its necessity and potential alternatives. 3. Performance risk appears moderate given the extended duration and the nature of R&D, which inherently involves uncertainty. 4. The contract's focus on physical, engineering, and life sciences aligns with core NASA objectives for space exploration and scientific discovery. 5. Benchmarking this contract's value is challenging due to its specialized R&D nature and sole-source award, requiring deep dives into comparable research grants or unique service agreements.
Value Assessment
Rating: fair
The total award amount of $26 million over approximately 8 years for research and development is difficult to benchmark directly against typical procurement contracts. Given the sole-source nature and the specialized research conducted by Caltech for NASA's Jet Propulsion Laboratory (JPL), a direct comparison to market rates for similar services is not feasible. However, the extended duration and the Cost Plus Award Fee (CPA) structure suggest a complex, ongoing research effort where pricing is tied to performance milestones. Further analysis would require understanding the specific research objectives and the award fee structure to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that NASA determined only the California Institute of Technology (Caltech) possessed the necessary capabilities or unique qualifications to perform the research and development required for the Jet Propulsion Laboratory (JPL). This approach bypasses the standard competitive bidding process. While it ensures access to specialized expertise, it limits opportunities for other potential contractors and may not result in the most cost-effective outcome achievable through open competition.
Taxpayer Impact: The sole-source award means taxpayers did not benefit from competitive pricing that could have potentially lowered costs. The justification for sole-source procurement needs to be robust to ensure public funds are used efficiently.
Public Impact
The primary beneficiaries are NASA and the scientific community, through advancements in physical, engineering, and life sciences relevant to space exploration. The contract supports critical research and development activities conducted at the Jet Propulsion Laboratory (JPL). The geographic impact is centered in California, where JPL is located, but the scientific outcomes have global implications. This contract supports a highly specialized scientific and engineering workforce, contributing to the nation's expertise in advanced research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs than a competed contract.
- Cost Plus Award Fee (CPA) structure can incentivize cost growth if not carefully managed and monitored.
- Long contract duration (over 8 years) increases the risk of scope creep or evolving research needs not being optimally addressed.
- Lack of transparency inherent in sole-source R&D contracts makes independent value assessment difficult.
Positive Signals
- Award to Caltech, a highly reputable institution with a long-standing relationship with NASA for JPL operations, suggests a strong alignment of expertise and mission.
- The Cost Plus Award Fee (CPA) structure, if well-defined, can incentivize contractors to meet or exceed performance objectives.
- The contract's focus on critical R&D areas supports NASA's core mission and technological advancement.
- The extended duration indicates a stable, long-term commitment to a specific research area, fostering deep expertise.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for government agencies like NASA, driving innovation and scientific discovery. The market for such specialized R&D services is often characterized by a limited number of highly qualified institutions and contractors. Benchmarking spending in this area typically involves comparing funding levels for similar research grants or contracts awarded by government agencies to academic institutions or specialized research organizations, rather than standard commercial service procurements.
Small Business Impact
This contract does not appear to involve small business set-asides, as it was awarded sole-source to a large academic institution (Caltech). There is no indication of subcontracting requirements specifically aimed at small businesses within the provided data. The focus is on specialized research capabilities rather than broad service delivery where small business participation is typically mandated.
Oversight & Accountability
Oversight for this contract would primarily reside within NASA's Jet Propulsion Laboratory (JPL) and the relevant program offices. As a sole-source award for R&D, oversight would likely focus on monitoring research progress, adherence to scientific objectives, and the effective utilization of funds, particularly through the award fee mechanism. Transparency may be limited due to the specialized and proprietary nature of R&D, but NASA's internal audit and program management functions would be responsible for accountability.
Related Government Programs
- NASA Jet Propulsion Laboratory (JPL) Operations
- NASA Research and Technology Contracts
- Federal Funding for Scientific Research
- Cost Plus Award Fee Contracts
Risk Flags
- Sole-source award requires strong justification to ensure fair pricing.
- Cost Plus Award Fee (CPA) contracts need careful monitoring of performance criteria and fee determination.
- Long contract duration increases the risk of scope misalignment with evolving needs.
Tags
research-and-development, nasa, caltech, jet-propulsion-laboratory, california, sole-source, cost-plus-award-fee, long-term-contract, scientific-research, engineering-research, life-sciences-research
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $26.0 million to CALIFORNIA INSTITUTE OF TECHNOLOGY. OVWST
Who is the contractor on this award?
The obligated recipient is CALIFORNIA INSTITUTE OF TECHNOLOGY.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $26.0 million.
What is the period of performance?
Start: 2003-09-11. End: 2011-12-31.
What is the specific research focus of this contract and how does it align with NASA's strategic goals?
This contract, awarded to the California Institute of Technology (Caltech) for the Jet Propulsion Laboratory (JPL), focuses on 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific sub-areas of research are not detailed in the provided data, this broad category encompasses fundamental scientific inquiry and technological innovation crucial for NASA's mission. This includes areas like astrophysics, planetary science, Earth science, materials science, robotics, propulsion systems, and biotechnology, all of which directly support NASA's strategic objectives in space exploration, scientific discovery, and technological advancement. The long-term nature and sole-source award suggest these R&D efforts are integral and perhaps unique to JPL's ongoing or future projects.
Why was this contract awarded on a sole-source basis, and what are the implications for cost-effectiveness?
The contract was awarded on a sole-source basis because NASA likely determined that Caltech possesses unique capabilities, expertise, or facilities essential for the specific research and development activities at JPL, and that no other source could reasonably fulfill these requirements. This is common for highly specialized R&D or when a long-standing, integrated relationship exists, as is the case between NASA and Caltech for JPL. The implication for cost-effectiveness is that competitive pricing advantages were forgone. While sole-sourcing can ensure access to critical expertise, it necessitates rigorous oversight of the Cost Plus Award Fee (CPA) structure to ensure that costs remain reasonable and that performance incentives are effectively managed to maximize value for the taxpayer.
How does the Cost Plus Award Fee (CPA) structure function in this R&D contract, and what are the potential risks?
In a Cost Plus Award Fee (CPA) contract, the contractor (Caltech) is reimbursed for allowable costs incurred, plus a fee that consists of a fixed base amount and an award amount. The award amount is determined based on the government's evaluation of the contractor's performance against pre-defined criteria. For this R&D contract, the award fee likely incentivizes achieving specific research milestones, scientific breakthroughs, or technological advancements. Potential risks include the government overestimating performance or setting award criteria too leniently, leading to higher-than-expected fees without commensurate value. Conversely, overly strict criteria could stifle innovation. Effective administration and clear performance metrics are crucial to mitigate these risks.
What is the historical spending pattern for similar R&D contracts at NASA or JPL?
Historical spending patterns for similar R&D contracts at NASA and JPL are characterized by long-term commitments to core scientific and engineering disciplines. Contracts often involve large academic institutions or research organizations due to their specialized expertise and facilities. The total obligated amounts can vary significantly based on the scope and duration, but multi-million dollar awards over several years are common for major research initiatives. The 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) consistently receives substantial federal funding. Analyzing past awards to Caltech for JPL, or similar contracts with other research entities, would reveal trends in contract duration, funding levels, and the prevalence of different contract types like CPA or cost-reimbursement variants.
What are the potential performance risks associated with a long-duration R&D contract like this?
Performance risks in a long-duration R&D contract are multifaceted. Firstly, the inherent uncertainty of research means that planned objectives may not be met, or breakthroughs may occur in unexpected areas. Secondly, over an extended period (over 8 years in this case), scientific priorities can shift, or technological landscapes can change, potentially rendering the original research scope less relevant or requiring significant adaptation. Thirdly, maintaining consistent performance and motivation within the research team over many years can be challenging. Finally, the complexity of R&D often involves intricate technical challenges and interdependencies, increasing the likelihood of unforeseen technical hurdles that could impact timelines and outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 51
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 4800 OAK GROVE DR, PASADENA, CA, 91109
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,006,243
Exercised Options: $26,006,243
Current Obligation: $26,004,097
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS703001
IDV Type: IDC
Timeline
Start Date: 2003-09-11
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2020-06-18
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